New Cryptocurrency Regulation Rules Postponed In Canada
New cryptocurrency regulation rules of Canadian companies were due by the fall of 2018. However, the Canadian government postponed the deadline, noting that the final version of the set of rules will be published in Canada Gazette by the end of 2019.
By that time, the Canadian government has already entered the active stage of preparation for the parliamentary elections of 2019, so it will be true to say that the real terms have moved even further. The reason for this is a mandatory 12-month interval between the publication and implementation of any changes in the regulatory policy, including the cryptocurrency regulation.
In this regard, Canadian blockchain companies are split into two camps. Some of them consider the delay positively, believing that this way the government intends to abandon fairly strict rules published in 2018.
Other companies express their concern, because many countries are looking for answers to how to regulate cryptocurrency, while Canada stands still. It applies to Switzerland and Malta, which are actively developing the crypto industry because of the loyal attitude of the authorities.
According to a representative of the Blockchain Association of Canada (BAC), the government's decision should be evaluated as a cautious approach. And this is quite natural given the complexity of the issues that are to be solved.
Kyle Kemper, executive director of BAC
Executive director of BAC Kyle Kemper sees it as a good sign for the future development of the crypto sphere in Canada. "Sometimes the government is heading for innovation, but sometimes it's better just to observe the normal course of events and don't interfere as long as possible", he says.
The crypto market and prospects of its development
The previously published project with changes in cryptocurrency and blockchain laws caused a flurry of talks and comments. Perhaps, the discussion of the law on cryptocurrency was the reason for postponing the final adoption of a new set of rules.
Representatives of some Canadian cryptocurrency and blockchain companies were invited to a meeting with Finance Canada officials. Some comments received during the discussion of the project will be presented here.
BRI: The USA is a good example for Canada
One of the proposals submitted to the finance department was the report of the Toronto Blockchain Research Institute (BRI). It contains detailed recommendations on how to regulate cryptocurrency to build a competitive crypto industry within the legal space of Canada.
Don Tapscott, co-founder of the Toronto Blockchain Research Institute (BRI)
The BRI representatives who participated in the discussion note that significant normative work is to be done, but radical solutions should be avoided. They mention that Canada is the only developed country with a federative democracy that still has no centralized system to regulate exchanges and security markets.
The territory of Canada is huge, and this opens up a space for financial manipulations, unlike the US with the SEC. The measures that the Canadian government is taking today to control the participants in the financial market are already not so efficient within the country.
Possible consequences of a delay in the adoption of the cryptocurrency regulation
A member of the BRI's Advisory Committee Cole Diamond, CEO of the Coinsquare cryptocurrency exchange, also expressed his opinion on the situation. According to him, such a delay in the adoption of a certain regulatory base should not be viewed as positive. The lack of legal clarity does not allow Canadian companies to fully develop their activities and use all opportunities for the global development.
At the same time, Diamond recognizes the complexity of the processes behind this, and looks forward to the outcome. Evan Thomas, a lawyer from Toronto specializing in the operation of cryptocurrency and blockchain startups, agrees with this point.
Cole Daimond, CEO of Coinsquare
As Evan Thomas told Bitcoin Magazine, the delay in the cryptocurrency and blockchain law adoption can have a detrimental effect on businesses. While other jurisdictions do not waste their time on regulations, Canada hesitates. The longer the delay is, the slower progress will be in the future. Many Canadian companies are in the unenviable position of having to wait for solutions to be found.
Active members of the Canadian financial sector are forced to wait for important decisions, so that they could build business and banking relations on their basis. While there is no regulatory base, there is no understanding of the further development of the cryptocurrency and blockchain startups.
However, not all market participants are concerned about this uncertainty. For example, the head of consulting firm Outlier Solutions Inc. Amber D. Scott is confident that the delay in the discussion of the law on cryptocurrency shows that the government is very serious about this issue.
Scott believes that the Canadian authorities are interested in a stable and well-functioning work of the cryptocurrency sector. Today, Canadian blockchain companies need to focus on the conditions in which they work now, but they must be ready for changes after the adoption of a regulatory act.
At the same time, Scott admits that the delay will negatively affect the companies that independently regulate their activities. They spend a significant amount of money and effort to regulate legal relations. These are the requirements of their financial partners, and in the future, with the adoption of a new set of rules, the change of existing protocols will get much more expensive.